What is ‘Black Friday’
Black Friday has two important values. More modern refers to the Day after American Thanksgiving, which traditionally is itself the occasion for many employees, a day full of special shopping offers and heavy discounts, is considered the beginning of holiday shopping season.
In history, Black Friday the stock market crash, which took place in September. 24, 1869. On the same day, after a period of rampant speculation, gold prices fell sharply and the markets crashed.
Breaking down the ‘Black Friday’
On black Friday, it is common for retailers to offer special promotions and to open their doors in the wee hours to attract customers. (Some Hunters good purchases to make camp for the night in order to secure a place in line at your favorite store; the most fanatical, as you know, to skip Thanksgiving dinner altogether and spend the night in Parking lots for several days or even weeks.) Promotions usually last through Sunday, and traditionally, brick-and-mortar stores will see a surge in sales.
Black Friday and retail sales
Retailers can spend an entire year planning their Black Friday sale. They use this day as an opportunity to offer the lowest prices on overstock inventory and offer doorbusters and discounts on seasonal goods such as holiday decorations and traditional Souvenirs. The retailers also offer substantial discounts on big ticket items and best selling brands of TVs, smart appliances and other electronics to lure customers in the hope that once inside, they will buy higher-margin goods.The contents of the Black Friday ads are often so long-anticipated that retailers go to great lengths to ensure they don’t leak out publicly in advance.
Consumers often shop on black Friday for the hottest trending items, which can lead to stampedes and violence in the absence of adequate security. For example, “Black Friday” in 1983, clients engage in fights, brawls and stampedes in stores throughout USA to buy cabbage patch kids dolls, that year must have toys, and is considered to be in short supply. Horrible employee in a large store was even trampled to death one Black Friday in 2013, as crowds of shoppers pushed their way to the store when the door opened.
The surprising origins of Black Friday
The concept of retail trade, threw the post-Turkey day sales began long before that day, were actually coined “Black Friday”. In the quest kicks off the holiday shopping season with a Bang and attract crowds of shoppers hyped big deals the day after Thanksgiving for many decades, relying on the fact that many of the companies gave employees Friday off.
So why the name? Some say that day is called “Black Friday” in honor of the term “black” referring to profit, which stems from the ancient practice of accounting profits in black ink and losses in red ink. The idea of the retail business is enough to sell this Friday (and next weekend) to put yourself “in the black” for the rest of the year.
However, long before began to appear in advertisements and commercials, the term was actually invented by overworked police officers of Philadelphia. In the 1950-ies, the crowds of shoppers and tourists filled the City of brotherly love on the day after Thanksgiving. Not only is Philadelphia stores touting large sales and the opening of the holiday decorations on this special day, but the city also hosted the army/Navy football on Saturday the same weekend. As a result, the traffic cops had to work 12-hour shifts to cope with the crowd of drivers and pedestrians, and they were not allowed to take the day off. Over time, annoying the officers began to treat this horrible workday as “black Friday.”
The term quickly became popular and spread to the store the sellers that use “black Friday” to describe the long lines and General chaos, which they had to deal with that day. Had a bit of a joke in Philadelphia for several decades, although it has spread to several surrounding cities such as Trenton, new Jersey. Finally, in the middle of 1990-x years, Black Friday has engulfed the whole nation and started appearing in print and television advertising campaigns throughout the United States.
Evolution of black Friday
Somewhere along the way, Black Friday took a giant leap from the crowded streets and the crowded shops in the fevered shoppers fist-fighting over Parking spaces and pepper-spraying each other as they are fighting for the last tickle me Elmo. When is the Black Friday was mad, over-the-top trade event today?
What will happen in 2000 years when black Friday was officially designated the biggest shopping day of the year. Until then, that title went to the Saturday before Christmas. However, as more and more retailers are touting “can’t miss” after Thanksgiving sales and discounts on black Friday grew deeper and deeper, American consumers could no longer resist the pull of this magic day of purchase.
Today, black Friday is becoming a longer event – the black weekend. In 2013. Target announced that instead to open its doors on Friday morning, they would now begin selling the evening of Thanksgiving. That began to rage through large retail chains: Best buy, Kmart, walmart and Macy’s quickly followed suit. However, adding purchases only seem to increase sales by only 1% -2%, according to ShopperTrak, a website dedicated to the analysis of the behavior of consumer spending.
It turns out that Thanksgiving Day sales is growing rapidly, Black Friday sales fall at roughly the same pace. The main advantage of open for Thanksgiving: fewer buyers on black Friday helping to keep the crowds smaller and the lines shorter. Still, Friday remains the busiest day, today, on a holiday weekend.
Contest Cyber Monday
For online retailers, a similar tradition arose in the Monday after Thanksgiving. Cyber Monday is known as the unofficial start of the online holiday shopping season. Online shops often present their promotions and sales up to the actual day in order to compete with black Friday deals at brick and mortar stores. In fact, cyber Monday offers are now available as Walmart and Macy 12: 01 A. M. on Thanksgiving.
As a result, in terms of sales, cyber Monday is quickly catching up Black Friday. According to statistics from the National retail Federation, sales on black Friday weekend (Thursday through Sunday) have fallen consistently since 2012. Even so, in 2015 Black Friday weekend, 151 million Americans either took the trip or bought in the Internet, spending almost $300 per person on average, according to the NRF. And 72.8 percent of those who bought in stores made their purchases on “black Friday”.
Residents of the southern States typically spend more than those in the North. Texas, and more precisely in the city of Austin, Texas, is home to the biggest spenders in the country. In other cities housing serious buyers Scottsdale, Arizona. and San Jose, California. States with a higher cost of living also tend to see large expenditures: Connecticut, Hawaii and California.
Statistics show that men are more likely shop on black Friday than women, and on average spend 3% more. Statistically, age also contributes to communication, from 50 to 65 years bracket spending nearly 75% more than those aged 18 to 25. According to NDS, the clothing and accessories account for more than half (51.6%) of purchases in the “black Friday”.
The value of Black Friday
When people spend a hefty amount of money on this notoriously busy shopping day, sales were chalked up in the “black Friday” is often perceived as a litmus test for the General economic condition of the country and for economists to measure the confidence of the average American when it comes to discretionary spending. Those who share the Keynesian assumption that spending drives economic activity to “bottom view” Black Friday sales figures as a harbinger of a slowdown in economic growth.
Some investors and analysts are looking at the black Friday numbers, as a way to assess the overall condition of the entire retail industry. Others scoff at the notion that Black Friday has no real B4 predictability for stock markets in General. Instead, they assume that it only causes very short-term gains or losses.
However, in General, the stock market may be affected by having extra days off for Thanksgiving or Christmas. He longs to see increased trading activity of high yield and the day before a holiday or long weekend, the phenomenon known as the effect of leisure and the weekend effect. Many traders use these seasonal impacts.
Black Friday Stock Market Crash
While “black” may hint at the profitability, it is also often used to describe a terrible day in the financial markets. For example, on black Tuesday, Oct. 29, 1929, the market fell sharply, signaling the beginning of the great Depression. The biggest one-day drop in stock market history occurred on black Monday, Oct. 19, 1987, when the Industrial index Dow Jones fell more than 22%.
Dubbing these accidents dark days arose with one of the first crashes on the stock market in the United States in 1869. It was caused by a ring of speculators led by Jay Gould and James Fisk who tried to corner the gold market. In early September, they bought as much bullion as they can get their hands on, resulting in the price of gold will increase. They also asked for help Abel Corbin, the brother-in-law President Ulysses S. Grant: they wanted him to convince the President to limit the availability of the metal, which will drive its price even higher.
But their attempt to use the White house to manipulate supply failed. When Grant learned what was happening, he ordered the U.S. Treasury instead of to sell gold. The government unloaded $4 million, and on Friday September 24, 1869, the price of gold fell from $160 to $130 per ounce. The gold market collapsed, as a result, the stock market fell more than 20% next week, ruining many investors. The day became known in financial history as “black Friday”.